The USDA Loan is a great home purchase loan option that enables borrowers with low credit scores who might not otherwise qualify for a loan to obtain homeownership. However, despite being a great loan option, it is underutilized by homeowners due to various myths and a lack of clarity and understanding. Considering how a USDA loan can be a solution for you, we have decided to address various myths.
The idea behind uncovering the myths is to help first-time homebuyers take a step forward to their future home and prevent any misconceptions from stopping them from taking this life-changing chance.
Myth 1: USDA Loans Don’t Cover Developed Suburbs
There is a very common misconception among people that USDA loans cover only rural and remote areas. Although the USDA loans are designed to encourage home purchase in underdeveloped areas, you don’t have to end up nowhere to make yourself eligible for this loan. The definition of ‘rural’ is quite broad. To highlight, it means that it does include even those suburbs and towns that are developed. So, if you are not applying for a USDA loan because you believe that the area is not covered under a rural segment, then you must confirm it once. Don’t let any myths or misconceptions act as barriers.
Myth 2: Choose a Property with a Large Area
If you drive around suburbs or rural areas, you can witness several homes designed to fit the lifestyle preferences and requirements of a single family. There are no large plots or farming areas covered. So, if you believe that to be eligible for this loan, you will have to choose a property with a large area, then it’s not true.
Myth 3: Not Meant for First-time Home Buyers
Irrespective of whether you have purchased the home before or not, you can apply for USDA Loans, provided you have income that qualifies and the property you are planning to purchase is USDA-approved.